New Energy Corporation Corrects Jan. 3, 2002 Press Release

source: press release 2002.1.30

LA JOLLA, Calif.--New Energy Corporation (OTCBB:NECO - news) today announced corrections to a press release issued on Jan. 3, 2002.

The news release stated incorrectly that New Energy had signed a contract to sell electricity to Teixeira Farms of Santa Maria, Calif. Teixeira Farms did not sign
such a contract with New Energy. The actual transaction that was intended to be described in the Jan. 3, 2002, release relates to a series of purchase orders
received from Distributed Power Systems. New Energy has a strategic marketing agreement with MegaWatt Energy Corporation. MegaWatt received purchase
orders from Distributed Power Systems for the installation of four one-megawatt solar electric generators totaling $36 million. Megawatt assigned those purchase
orders to New Energy.

The Company attributes the error to confusion as to the nature of the transaction between New Energy and Magnum Financial Group, the Company's investor
relations advisors, who wrote the release. New Energy and Magnum have developed a new system for ensuring that press releases drafted and issued by Magnum,
on behalf of New Energy, have been properly reviewed and authorized by the Company, including review of all releases by New Energy's legal counsel.

Commenting on the correction, Michael Manahan, president of Magnum Financial Group, stated, ``It is Magnum's policy to insure that all material facts incorporated into press releases issued by Magnum on behalf of Magnum clients are vetted by an authorized company represented and approved for release. Clearly, in this instance, our system broke down. We certainly apologize to members of the investment community at large, and to the many friends of Magnum within the investment community that follow with interest the activities of Magnum clients.''

About New Energy Corporation

New Energy Corporation is a U.S. solar energy generator systems provider deploying the most advanced High Concentration Photovoltaic (HCPV) technology in
the world. The emerging HCPV technology enables the Company to deliver electrical and thermal solar energy generators to residential, commercial, industrial and
utility scale end-users on an economic basis superior to all other forms of renewable energy generators and more than competitive with fossil fuel generators. For
more information on New Energy please visit their website at www.newenergyco.com.

The matters set forth in this news release may contain forward-looking statements. Forward-looking statements involve certain risks and uncertainties that could
cause actual results to differ materially from expectations. Contributive factors to such differences include those identified in the company's filings with the Securities
and Exchange Commission (``SEC'').

Contact:

Magnum Financial Group, LLC
Michael Manahan, 213/488-0443
mike@magnumfinancial.com